The growing trend of tokenization in blockchain technology promises a revolution in global financial markets. It can make trading cheaper, increase liquidity, and automate processes. Tokenization, which is transitioning real-world assets such as equity and debt to the blockchain, could transform financial markets by enhancing liquidity and streamlining trading.
A report from the Global Financial Markets Association (GFMA) and Boston Consulting Group predicts the global value of tokenized illiquid assets to surge from around $0.3 trillion today to approximately $16 trillion by 2030.
Tokenization is gaining the attention of major players in traditional finance. Larry Fink, BlackRock chairman, acknowledged in May 2023 that tokenization could enhance the efficiency of capital markets. However, several challenges such as regulatory clarity, fragmentation, slow onboarding, and lack of infrastructure need to be addressed for tokenization to achieve mass adoption.
In addressing these issues, platforms such as Brickken have developed products like Token Suite to support issuers throughout the tokenization cycle. Token Suite allows companies to create, manage, and sell security tokens and other types of tokenized assets. The platform simplifies compliance with regulatory requirements through integrated KYC and AML tools. Additionally, Brickken connects clients with vetted experts and investors to assist in token sales.
Once tokens are created, companies can embed voting rights, automate dividend payouts, and minimize costs related to investor activities. Brickken's investor portal enables investment in alternative assets and makes tokenized bonds more accessible to retail investors.
With Brickken's white-label solution, companies can access a global pool of investors directly, thereby bypassing intermediaries and custodians. Brickken's Token Suite is designed for regulatory compliance in multiple jurisdictions, providing a comprehensive solution for token creation.
The business model of Brickken has attracted top-tier venture capital firms. It received a $350,000 grant from Neotec, a Spanish-based fund backed by the European Investment Fund (EIF), and has raised a total of $3 million. The company has also secured exclusive admission to Spain's financial regulatory sandbox.
Tokenization platforms like Brickken are accelerating the transition to blockchain-based security tokens, creating the necessary infrastructure for Web3 finance. With such comprehensive solutions, companies and investors have a comprehensive resource for creating, selling, and managing digital assets.
